9. Taxes
The following table summarizes the income tax recognized in profit or loss for the years ended 31 December 2018 and 2017.
|
Year ended 31 December |
|
(thousands of €) |
2018 |
2017 |
Current tax |
(584) |
(218) |
Deferred tax |
535 |
20 |
Income taxes |
(50) |
(198) |
Current tax amounted to €0.6 million for the year ended 31 December 2018 and €0.2 million for the year ended 31 December 2017, and was related to corporate income taxes for subsidiaries operating on a cost plus basis.
Deferred tax income of €0.5 million for the year ended 31 December 2018 and of €0.02 million for the year ended 31 December 2017 related to subsidiaries working on a cost plus basis and to our fee-for-service business.
Tax liabilities
The below table illustrates the tax liabilities related captions in the balance sheet as at 31 December 2018 and 2017.
|
31 December |
|
(thousands of €) |
2018 |
2017 |
Current tax payable |
1,175 |
865 |
Total tax liabilities |
1,175 |
865 |
On 31 December 2018, €1.2 million of tax liabilities were primarily related to our subsidiaries operating on a cost plus basis.
Taxes recognized in profit or loss
For the purpose of the disclosure below corporation tax was calculated at 29.58% (2017: 34%) – which is the tax rate applied in Belgium – on the estimated assessable profit for the year. The applied tax rate for other territorial jurisdictions was the tax rate that is applicable in these respective territorial jurisdictions on the estimated taxable result of the accounting year.
|
Year ended 31 December |
|
(thousands of €) |
2018 |
2017 |
Loss before tax |
(29,209) |
(115,507) |
Income tax debit / credit (-), calculated using the Belgian statutory tax rate (29.58% in 2018, 34% in 2017) on the accounting income / loss (-) before tax (theoretical) |
(8,640) |
(39,261) |
Tax expenses in income statement (effective) |
50 |
198 |
Difference in tax expenses / income to explain |
8,690 |
39,458 |
|
|
|
Effect of tax rates in other jurisdictions |
411 |
14 |
Effect of non-taxable revenues |
(11,558) |
(11,277) |
Effect of share-based payment expenses without tax impact |
7,530 |
5,317 |
Effect of consolidation elimination without tax impact |
382 |
102 |
Effect of non-tax-deductible expenses |
945 |
404 |
Effect of recognition of previously non recognized deferred tax assets |
(1,977) |
(414) |
Effect of tax losses (utilized) reversed |
(150) |
(763) |
Effect of non-recognition of deferred tax assets |
13,108 |
45,895 |
Effect of change in tax rates |
– |
181 |
Total explanations |
8,690 |
39,458 |
Non-taxable revenues for the years ended 31 December 2018 and 2017 were related to non-taxable subsidies and tax credits.